Amtrak 2013 Annual Report Download - page 28

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Amtrak Annual Report 2013 | 29
Investing Cash Flows
Cash flows relating to investing activities consist primarily of cash used for capital expenditures. Net
cash used in investing activities was $1.0 billion in FY 2013, compared with $853.9 million in FY
2012. The increase was driven by an increase in capital spending due to the Hudson Yards Tunnel
project and Long Distance Car Replacement project, along with spending on the new ACS 64
locomotives and the Springfield double track.
Financing Cash Flows
Cash flows from financing activities consist primarily of federal and state appropriations, and
proceeds from issuance of long-term debt, offset by repayment of debt and capital lease obligations.
Financing activities provided cash of $1.4 billion in FY 2013, compared with $1.5 billion in FY 2012.
The year-over-year change was primarily because of the decrease in federal payments for capital and
operating expenditures.
Financing cash flows for FY 2013 and FY 2012 are discussed in more detail below:
• Net financing cash inflows for FY 2013 were $1.4 billion. Appropriations from the federal
government under the 2013 Full-Year Continuing Appropriations Act provided funding in
FY 2013 of $1.3 billion. During the same period, we received $110.1 million under a financing
agreement with the Federal Railroad Administration (“FRA”), through the Railroad
Rehabilitation & Improvement Financing (“RRIF”) loan program; $57.2 million under a
Memorandum of Understanding (“MOU”) agreement with the FRA; $130.8 million in federal
and state capital payments; $42.0 million in proceeds from the issuance of PEDFA Garage Bonds
and $3.7 million in reimbursements from the 2012 Full-Year Continuing Appropriations Act.
Proceeds from federal appropriations and other grants were used for debt repayments of
$11.8 million, to pay capital lease obligations and exercise five lease early buyout options for
$154.9 million, and to pay mortgage obligations of $117.1 million.
• Net financing cash inflows for FY 2012 were $1.5 billion. Appropriations from the federal
government under the 2012 Full-Year Continuing Appropriations Act provided funding in
FY 2012 of $1.4 billion. During the same period, we received $89.4 million under a financing
agreement with the FRA through the RRIF loan program; $307.5 million under an MOU
agreement with the FRA; $115.3 million in federal and state capital payments; $95.1 million
in proceeds from the issuance of PEDFA Series A bonds and $10.7 million in
reimbursements from the 2011 Full-Year Continuing Appropriations Act. Proceeds from
federal appropriations and other grants were used for debt repayments of $170.1 million, to
pay capital lease obligations and exercise six lease early buyout options for $222.3 million,
and to pay mortgage obligations of $29.6 million.
We are subject to various covenants and restrictions under our borrowing and leasing arrangements.
A default by us or acceleration of our indebtedness may result in a cross-default with other debt and
may have a material adverse effect on us. We were in compliance with all of the covenants in our
financing agreements as of September 30, 2013. Subsequent to September 30, 2013, we failed to
meet our covenant obligations under certain of our borrowing arrangements to provide on a timely
basis our audited financial statements as of and for the year ended September 30, 2013. Waivers
were received from certain lenders where necessary to prevent a default, and upon delivery of the